In the parable of the talents (Matthew 25:14–30), a master entrusts his property to three servants before leaving on a journey. Each servant receives talents according to their abilities: one gets five, another two, and the last one. Upon the master’s return, the first two servants report they have doubled their talents and are rewarded. The third servant, who hid his talent, is punished.
Why Save and Invest?
Saving is setting aside money for future use after covering living expenses. Investing, however, is about growing that money to achieve financial goals. Simply saving without investing can lead to erosion of the value of that money due to costs, fees, inflation, and taxes, much like termites eating away at wood.
The Necessity of Investing
Investing ensures your money grows over time, providing financial security and income even after retirement. It benefits not just you but also your family and loved ones. Sharing investment knowledge can empower younger generations to secure their futures and friends and make ends meet more easily.
The Power of Compound Interest
Albert Einstein called compound interest the “eighth wonder of the world.” It allows your investments to grow exponentially over time. For example, a 9% return can turn $1 into $74.36 over fifty years, compared to just $4.50 with simple interest. Investing in one well-diversified low-cost ETF, like an ETF on the S&P 500 or, even better, a global ETF, and putting in 10% of your income during your working life can achieve this.
Investing wisely ensures you use your talents effectively, securing a prosperous future.
